Pacira Shares Tumble Following BMO's New Underperform Rating

BMO analyst Gary Nachman initiated coverage on shares of Pacira Pharmaceuticals Inc PCRX with an Underperform rating and $36 price target Wednesday.

Nachman showed concern the Street's current consensus estimate for Exparel sits "too high." Although he called Exparel "a very solid product for post-surgical pain," he warned "further penetration at the hospitals has become more challenging."

The BMO analyst also pointed at cautious commentary from physicians who used Pacira's Exparel in the past and saw usage "coming down and being more limited to certain types of surgeries, which could make Exparel more vulnerable to competition at some point."

Pacira shares have traded down more than 2 percent to around $38 following the new Underperform rating.